A US appeals court has denied a request from telecoms players to prevent the FCC’s new net neutrality rules from taking effect until it issues a final decision on their legality.
As such, the new FCC rules, approved in February, are effective from…
A US appeals court has denied a request from telecoms players to prevent the FCC’s new net neutrality rules from taking effect until it issues a final decision on their legality.
As such, the new FCC rules, approved in February, are effective from today (12 June). The reforms reclassify ISPs as common carriers under Title II of the Telecommunications Act and ban the blocking and throttling of internet traffic, as well as paid prioritisation.
Incumbent AT&T and a number of industry trade groups sued the FCC in April, contending that it had exceeded its powers in making the new rules. They asked the court to stay the rules until the lawsuit is resolved.
In spite of rejecting this request, the US Court of Appeals for the DC Circuit did say that the lawsuit should be expedited.
Walter McCormick, president of trade body USTelecom, one of the parties to the lawsuit, said that while the organisation was disappointed that the stay had been denied, it appreciated that the bar for obtaining one is very high.
He said he believed the court’s decision to expedite the lawsuit would lead to a quicker solution on how to regulate broadband internet access service.
“As we pointed out in our request for stay, the FCC and Congress have long agreed that this critical service, which is fundamental to consumers’ daily lives, should be lightly regulated to continue the enormous investment and innovation that has enabled the internet-related economy to thrive.”
USTelecom does, however, support the new rules banning blocking, throttling and paid prioritisation, he said.
FCC chairman Tom Wheeler welcomed the appeal court’s ruling, describing it as “a huge victory for internet consumers and innovators”.
“Starting [today], there will be a referee on the field to keep the internet fast, fair and open … The rule also gives broadband providers the certainty and economic incentive to build fast and competitive broadband networks.”
New Street Research analyst Jonathan Chaplin said he expected the request for a stay to be denied as the appealing parties would have had a tough time showing that the new rules would cause irreparable harm.
“We continue to believe that it is highly likely that a federal government agency will have clear authority to prevent ISPs from blocking, throttling and offering paid prioritisation for data traffic, if not under Title II then by some other means,” he said.
“These principles are the same principles that ISPs have been operating under for the last decade, and we do not believe this will have a meaningful impact on revenue generation or the profitability of companies.”
